The UK Government’s Department for Levelling Up Housing and Local Communities (DLUHC) has launched a technical consultation on the proposed Infrastructure Levy.
The Infrastructure Levy is a reform to the existing system of developer contributions – Section 106 planning obligations and the Community Infrastructure Levy – in England. This consultation will inform the design of the Levy and of regulations that will set out its operation in detail. A further consultation on the drafting of those regulations will be published in due course. Alongside this publication is a report on an earlier design of the Levy, commissioned by the Department for Levelling Up, Housing and Communities. This consultation will last for 12 weeks from 17 March closing 9 June 2023.
The government wants to make sure that local authorities receive a fairer contribution of the money that typically accrues to landowners and developers. This will support funding for the infrastructure – affordable housing, schools, GP surgeries, green spaces and transport infrastructure to support connectivity that local communities expect to come with new development.
To do this, the Levelling Up and Regeneration Bill (‘the Bill’) seeks to replace the current system of developer contributions with a mandatory, more streamlined, and locally determined Infrastructure Levy. The Bill provides the framework for the new Levy, with the detailed design to be delivered through regulations.
Access the technical consultation from the Department for Levelling Up, Housing and Communities